Royal Navy veterans are furious that a £15 million offer to turn the aircraft carrier into a hotel and museum was snubbed

A further £12 was earmarked to convert “Lusty”, as she is known, into a naval museum, similar to the USS Intrepid Sea, Air and Space Museum in New York.

The plan would turn it into a naval museum, an entertainment centre, including a theatre, and a quality hotel offering some free accommodation to veterans.

Campaigners are angry and baffled at the MoD’s refusal and are considering launching a High Court action to save Lusty from scrap.

Tory MEP David Campbell Bannerman, who has led the rescue campaign, said: “This bid meets all the government’s aspirations and would make £1 million more, create many jobs and would impose no further cost on the MoD.

“It just doesn’t make sense to scrap her now – it is irrational and unreasonable.”

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The MoD’s scrap arm, the Disposal Services Authority, has made over £100 million over the past four years.

It has scrapped virtually every major ship and has gone to the same Turkish scrapyard since 2008 – sending HMS Invincible, Ark Royal, Fearless and Intrepid there, along with numerous destroyers and frigates.

Former Royal Navy Commander John Muxworthy added: “Lusty is the last great warship of the post-war era with such a distinguished history.

“It would make an ideal armed forces museum and be a lasting symbol of their service and sacrifice.”

The plan, by a group of businessmen, would have netted the Ministry of Defence nearly £1 million MORE than selling it to a Turkish breakers’ yard

An MOD spokesman said: “The competition to find a suitable buyer for Illustrious ran for two years, and sadly no viable bids were received. This proposal was made three months after the contract was awarded to recycle the ship.

“To cancel the sale agreement at this late stage would be very expensive for the UK taxpayer. We are now looking to the future of the Royal Navy with the arrival of the new Queen Elizabeth Aircraft Carrier due in Spring 2017.”

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